Omaha, NE (June 2017) Fresh out of college, in 1982, Jeff Auxier, made a pie in the sky call to his financial superhero, Warren Buffett. Thirty-one years later, that timeless advice, continues to guide Auxier’s investment philosophy. Echoing Buffet, Auxier told a packed crowd at the 2017 GuruFocus Value Conference, “Investors have got to know and understand what they own. Too many people are following the easy money flowing into unwise speculative investments.”

Auxier is an experienced market historian and business analyst. He served on the first national, separate accounts board with Jamie Dimon and is founder of the Auxier Focus Fund. Auxier is also a profitable farmer, growing hazelnuts and raising cattle on Auxier Family Farms, outside Portland, Oregon.

Aggressive Savings Unleashes the Wonders of Compounding

At the GuruFocus conference, Auxier evangelized the power of compounding. “It’s hard to beat a well-nurtured business with attractive economics, exceptional management and purchased at bargain practices. Buy the business, not the market!” said Auxier, who offered up some enviable examples:

$1,000 invested in Costco in 1985 is now worth over $800,000.

$1,000 invested in the Nike IPO in 1981 is now worth over $720,000.

$1,000 invested in Starbucks in 1992 is now worth over $230,000.

One share of Coca-Cola bought on the 1919 IPO cost $40. Today that one share, with dividends reinvested, is worth over $10 million.

Choose Your Heroes Carefully

Auxier stressed the importance of setting goals, good habits, ethics and following “ledgers” for personal growth. “Track your saving and spending, as John D. Rockefeller did to build the world’s largest oil company; Ben Franklin followed a behavior ledger of high grade morals and ethics; and Bill Gates is an example of following a ledger to be a voracious learning machine. He reads a book a week,” said Auxier.

Always Question, Especially When Urged Not to Think

Not following the investment herd is another tenant of Auxier’s philosophy. “In 1999, passive investment practices peaked in popularity. Within two years, the Nasdaq suffered an 80 percent decline. Always question what sounds like a sure thing,” said Auxier. He cited Enron, which, in 2001 and at 80 dollars a share, was touted by some financial media as a company with “best practices.” It later collapsed under massive, hidden, off-balance sheet debt.

To read The Auxier Report, a detailed analysis of the market, click here.

About Jeff Auxier and the Auxier Focus Fund

Auxier is a contrarian schooled by his investment heroes, long before they became today’s financial rock stars. Fresh out of the University of Oregon School of Business, Auxier called Warren Buffet, Sir John Templeton, and others. Auxier is still amazed they answered his calls and, in some cases, met with him. To this day their advice guides Auxier’s investment philosophy. Auxier went onto become Senior VP of Investments and Senior Portfolio Mgt. Director for Foster Marshal/Smith Barney. He served with Jamie Dimon (now head of JP Morgan) on the first board to set national policy managing client accounts. In 1993 Auxier received the Consulting Group Bob Dwyer Award honoring “integrity and knowledge.” In 1999 he founded Auxier Asset Management and the Auxier Focus Fund. Auxier says, “I wanted to create and run a fund that matched my own investment philosophy, with a focus on compounding and a goal of protecting over the long haul.” Auxier researches 8-10 hours daily and many of the client portfolios he manages still hold some of the 130 plus stocks he bought decades ago, including Costco’s climb from 17 cents to 136 dollars, and Precision Castparts’ rise from one dollar to 235 dollars. “We strive for those kinds of returns by relentlessly hunting for good businesses with good managers,” says Auxier. Whether he’s researching what crops to harvest on his Oregon farm, or which stocks to grow for his clients, the 32-year investor takes the long view. “It takes a passion for the necessary and daily, grind-it-out research. There are no shortcuts. It’s a mission to help people that still drives me today.”

IMPORTANT INFORMATION

Before investing you should carefully consider the Fund’s investment objectives, risks, charges and expenses. This and other information is in the prospectus, a copy of which may be obtained by calling (877) 328-9437 or visiting the Fund’s website. Please read the prospectus carefully before you invest.

The Fund may invest in value stocks, which are subject to risk that their intrinsic value may never be realized, and growth stocks, which may be susceptible to rapid price swings. Investments in mid-sized companies generally carry greater risk than is customarily associated with larger companies. Moreover, if the Fund’s portfolio is overweighed in a sector, any negative development affecting that sector will have a greater impact on the Fund than a fund that is not overweighed in that sector. An increase in interest rates typically causes a fall in the value of a debt security (Fixed Income Securities Risk) with corresponding changes to the Fund’s value. Foreign securities are subject to additional risks including international trade, currency, political, regulatory and diplomatic risks. There can be no guarantee of success with any technique, strategy, or investment. All investing involves risk, including the loss of principal.

]]>https://www.auxierasset.com/2017-gurufocus-value-conference-americas-farmer-on-wall-street-jeff-auxier-shares-insights-from-31-years-negotiating-the-markets/feed/0Money Life: Market Call with Chuck Jaffeehttps://www.auxierasset.com/money-life-market-call/
https://www.auxierasset.com/money-life-market-call/#respondSun, 05 Jun 2016 20:29:39 +0000http://auxierasset.com/?p=2625Important Disclosure: It should not be assumed that stocks discussions are recommendations, nor that they will be profitable, nor that they will equal the historical performance of the securities mentioned. Past performance is not indicative of future results.

Conference attendees will hear Auxier’s unusual perspectives, not only as a 32-year value investor, but also as an American farmer who sees the market—its trends, opportunities and pitfalls—from a ground level view. Auxier credits the Auxier Focus Fund’s longevity to living far from the Wall Street herd, on his cattle and hazelnut farm, not far from the Oregon Trail. It also didn’t hurt to get some post college advice from the Oracle of Omaha himself, Warren Buffett.

A Few Top-of-Mind Topics From Jeff Auxier

Higher Risk of Negative Credit Cycle—“Companies that sell large ticket items or require high mandatory capital spending are riskier, given the global growth in debt levels. We favor management that has honed competitive advantages to better serve customers, and retain purchasing power, while requiring a minimum of new investment.”

Sectors on Auxier’s Radar Screen—“Consumption expenditures are running the highest since 2006. Food, beverage, healthcare, and other necessity items show solid demand. Most of the stocks we seek have historically high returns on capital, and high free cash flow yields, with low mandatory capital spending requirements. Declining energy and commodity inputs provide a tailwind to many of the strong quality franchises we own. Gas savings are fueling increased travel, dining out, and experiences. Services comprise over 85 percent of the U.S. economy, and fundamentals in housing (encouraging household formations), hospitality, leisure, and healthcare are holding up.”

Low Energy Prices Set Stage for Tax and Economic Stimulus—“Lower energy prices give room for an energy tax to fund infrastructure needs. This is critical to handle growth of online retailer deliveries, record car travel, driverless car technology, and the historic first of more people now dining out rather than eating at home.”

China’s Record Outflows—“The U.S. continues to be a destination for global money seeking strong ‘rule of law’ protections. China had record outflows, over 800 billion dollars this past year, and much of it landed in America.”

Why Volatility is Not Risk—“The dollar’s purchasing power has declined 98 percent since 1914. That is risk, not volatility. Navigating through all kinds of markets the past 30 plus years has led me to believe that one’s stomach is the organ most crucial to realizing high compounded returns. While company ownership beats most investment classes over long periods, the market’s normal volatility often takes people out of the game, especially in extreme bear markets. I remember, like yesterday, the 33 percent drop in 1987—in a strong economy. That post-crash period was a tremendous time to invest, yet the volatility was off the charts.”

Approach To Investing—“Since the early 1980s, we have approached the markets in a systematic, rational, low risk manner. We tend to do better in difficult markets. Our competitive advantages are cumulative knowledge of individual businesses, passion for research, and emphasis on price versus value. Since we started the Fund in 1999, an investment of $10,000 in the Dow Jones Industrial Average has grown to $23,441 and to $20,179 invested in the S&P 500. Each lagged behind a corresponding hypothetical $10,000 stake in the Auxier Focus Fund Investor Shares, which has grown to $30,645 (as of 3/31/16). That’s despite the Fund’s average equity exposure of less than 85 percent. Within 10 years of the Fund’s inception, the market suffered two declines in excess of 40 percent. In the U.S., only one in five companies survive 15 years. Our goals remain lower risk allocation that beats the benchmark over the long haul.”

Average Annual Returns for the period ended 3/31/2016

1 Year

3 Year

5 Year

10 Year

Since Inception (7/9/99)

Cumulative Since Inception

Auxier Focus Fund (Investor Shares)

-1.34%

6.41%

7.30%

6.14%

6.92%

206.44%

S&P 500 Index

1.78%

11.82%

11.58%

7.01%

4.29%

101.79%

Dow Jones Industrial Average

2.08%

9.29%

10.27%

7.54%

5.55%

146.17%

Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. As stated in the current prospectus, the Fund’s Investor Class Share’s annual operating expense ratio (gross) is 1.27%. The Fund’s adviser has contractually agreed to waive a portion of its fee and/or reimburse Fund expenses to limit total annual operating expenses at 1.14%, which is in effect until October 31, 2016. Other share classes may vary. The Fund charges a 2.0% redemption fee on shares redeemed within six months of purchase. For the most recent month-end performance, please call (877)328-9437 or visit the Advisor’s website at www.auxierasset.com. The recent growth rate in the stock market has helped to produce short-term returns that are not typical and may not continue in the future.

Auxier is a contrarian schooled by his investment heroes, long before they became today’s financial rock stars. Fresh out of the University of Oregon School of Business, Auxier called Warren Buffet, Sir John Templeton, and others. Auxier is still amazed they answered his calls and, in some cases, met with him. To this day their advice guides Auxier’s investment philosophy. Auxier went onto become Senior VP of Investments and Senior Portfolio Mgt. Director for Foster Marshal/Smith Barney. He served with Jamie Dimon (now head of JP Morgan) on the first board to set national policy managing client accounts. In 1993 Auxier received the Consulting Group Bob Dwyer Award honoring “integrity and knowledge.” In 1999 he founded Auxier Asset Management and the Auxier Focus Fund. Auxier says, “I wanted to create and run a fund that matched my own investment philosophy, with a focus on compounding, and a goal of protecting over the long haul.” Auxier researches 8-10 hours daily, and many of the client portfolio’s he manages still hold various of the 130 plus stocks he bought decades ago, witnessing Costco’s climb from 17 cents to 136 dollars, and Precision Castparts’ rise from one dollar to 235 dollars, for example. “We strive for those kinds of returns by relentlessly hunting for good businesses with good managers,” says Auxier. Whether he’s researching what crops to harvest on his Oregon farm, or which stocks to grow for his clients, the 32-year investor takes the long view. “It takes a passion for the necessary and daily, grind-it-out research. There are no shortcuts. It’s a mission to help people that still drives me today.”

IMPORTANT INFORMATION

Before investing you should carefully consider the Fund’s investment objectives, risks, charges and expenses. This and other information is in the prospectus, a copy of which may be obtained by calling (877) 328-9437 or visiting the Fund’s website. Please read the prospectus carefully before you invest.

Fund returns (i) assume the reinvestment of all dividends and capital gain distributions and (ii) would have been lower during the period if certain fees and expenses had not been waived. Performance shown is for the Fund’s Investor Class shares; returns for other share classes will vary. Performance for Investor Class shares for periods prior to December 10, 2004 reflects performance of the applicable share class of Auxier Focus Fund, a series of Unified Series Trust (the “Predecessor Fund”). Prior to January 3, 2003, the Predecessor Fund was a series of Ameriprime Funds. The performance of the Fund’s Investor Class shares for the period prior to December 10, 2004 reflects the expenses of the Predecessor Fund.

The Fund may invest in value and/or growth stocks. Investments in value stocks are subject to risk that their intrinsic value may never be realized and investments in growth stocks may be susceptible to rapid price swings, especially during periods of economic uncertainty. In addition, the Fund may invest in mid-sized companies, which generally carry greater risk than is customarily associated with larger companies. Moreover, if the Fund’s portfolio is over-weighted in a sector, any negative development affecting that sector will have a greater impact on the Fund than a fund that is not over-weighted in that sector. An increase in interest rates typically causes a fall in the value of a debt security (Fixed-Income Securities Risk) with corresponding changes to the Fund’s value. Foreign securities are subject to additional risks including international trade, currency, political, regulatory and diplomatic risks.

The S&P 500 Index is a broad-based, unmanaged measurement of changes in stock market conditions based on 500 widely held common stocks. The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the Nasdaq. One cannot invest directly in an index or an average.

Foreside Fund Services, LLC, distributor.

]]>https://www.auxierasset.com/omaha-value-investor-conference-2016-will-feature-grassroots-level-view-of-wall-street-from-american-farmervalue-investor-jeff-auxier-founder-of-auxier-focus-fund/feed/0“Investors are Confusing Volatility for Risk; Panic is Not Knowing What You Own,” says Jeff Auxier, Longtime Mutual Fund Manager Known for Eating His Own Cookinghttps://www.auxierasset.com/investors-are-confusing-volatility-for-risk-panic-is-not-knowing-what-you-own-says-jeff-auxier-longtime-mutual-fund-manager-known-for-eating-his-own-cooking/
https://www.auxierasset.com/investors-are-confusing-volatility-for-risk-panic-is-not-knowing-what-you-own-says-jeff-auxier-longtime-mutual-fund-manager-known-for-eating-his-own-cooking/#respondTue, 15 Sep 2015 16:31:18 +0000http://auxierasset.com/?p=2406

FOR IMMEDIATE RELEASE

Media Contact: Shirley Hancock

503.781.4234

shirleyhancock753@gmail.com

Amy Evenhus 800.835.9556

aevenhus@auxierasset.com

“Investors are Confusing Volatility for Risk; Panic is Not Knowing What You Own,” says Jeff Auxier, Longtime Mutual Fund Manager Known for Eating His Own Cooking

16 Year Old Auxier Focus Fund (AUXFX) Strives for Slow and Steady Protection of Principal—Especially During Downturns

Lake Oswego, Ore. – September 2015 – Nearly three thousand miles from the Animal House panic on Wall Street, Jeff Auxier is as calm as one of the cattle grazing at his Auxier Family Farms in Oregon.

With 32 years of cumulative investment knowledge, Auxier has earned some perspective. For the past 16 years he’s shepherded the Auxier Focus Fund through dozens of bumps and bubbles. Prior to that, Auxier was a Senior VP of Investments and Senior Portfolio Mgt. Director for Foster Marshall/Smith Barney. He served with Jamie Dimon (now head of JP Morgan) on the first board to set national policy managing client accounts, and was recipient of the Consulting Group Bob Dwyer Award honoring integrity and knowledge. He welcomes the market turmoil.

“This is the first correction we’ve had since 2011, it’s normal and needed. People panic because they don’t do their research. Now more than ever you need to understand what you own, why you own it and what you’ll do when it drops —because it always drops.”

Tacos, for Example

Auxier, who researches 8-10 hours a day, still owns many of the 130 plus stocks he bought decades ago, witnessing Costco’s climb from 17 cents to 136 dollars and Precision Castparts from one dollar to 235, for example. “We strive for those kinds of returns by relentlessly researching for good businesses, with good managers,” says Auxier. He cites former manager of Fidelity’s Magellan Fund, Peter Lynch and his patience of Job handling of Taco Bell, which in the 1970s was one of his largest holdings. Lynch started buying Taco Bell at 14 dollars, remained faithful when it fumbled to one dollar during the energy crisis, then celebrated when Pepsi bought it at 39.

“Gutting it out”

Auxier admits corrections are often “violent and take your breath away.” “During these squalls an investor’s stomach must become a bigger factor in gutting it out in order to achieve higher returns,” says Auxier. The average stock fluctuates 50 percent, but Auxier believes investors have been emboldened by a lack of volatility due to the federal stimulus. “Everyone is chasing performance, pouring into the same index funds, and not realizing how much of their principal they can lose in the washout. There’s real pain on the downside.”

A Few Auxier Thoughts:

Low energy prices set stage for tax and economic stimulus—Energy cost savings are a positive backdrop for investors and should provide a solid foundation for U.S. economic growth. Auxier likes Boeing, trucking, UPS, Fed Ex. With lower gas prices there’s greater chance of a gas tax to fund infrastructure repairs.

China—Liberalization of stock ownership and margin accounts will expose a new generation of investors en masse to cycles of fear, greed and folly, robbing future growth. China’s bank balance sheets have added more than 15 trillion dollars from 2008-2013, larger than the entire U.S. banking system.

Emerging markets entering crisis mode—It’s looking a lot like the late 1990s where money came back to the U.S. due to severe currency devaluations.

Housing—A bright future as Millennials enter the home buying market. Interesting twist in the NW: Part of the reason for growing immigration numbers is it’s now legal to use and grow marijuana.

Biotech bubble—75 percent of these companies are losing money. With 2.5 billion dollars in revenue and a market cap of 150 billion, this is clearly a bubble valuation.

Stock prices—Will finally start trading in line with fundamentals as federal stimulus abates.

The sunny side to parabolic rises in oil—Over the last 60 years, the cheapest markets in history arrived on the back of big oil price hikes. Huge drops in energy inputs should equate to higher quality stocks, typically taking 18 months before it’s circulated in economy in terms of more lending.

Sectors worth watching—Consumer staples, health and stocks up and down the food chain (says the farmer). Auxier continues to seek “managerial event” situations where talented leaders add value in any kind of economic environment, rather than depending on risking markets for returns. Auxier likes Philip Morris, Berkshire Hathaway, Precision Castparts.

Investment allocation—AUXFX is 70 percent invested in American companies (the S&P is 100 percent). The remainder, 17 percent is in foreign stocks, six percent in cash and seven percent in workouts such as corporate spinoffs, as of June 30, 2015. Auxier’s goal remains lower risk allocation that beats the benchmark over the long haul. See auxierasset.com for more.

About Jeff Auxier and the Auxier Focus Fund

Auxier is a contrarian schooled by his investment heroes, long before they became today’s financial rock stars. Fresh out of the University of Oregon School of Business, Auxier called Warren Buffett, Sir John Templeton and others. He’s still amazed they answered his calls and, in some cases, agreed to meet with him, sharing advice that guides Auxier’s investment philosophy to this day. Auxier went onto become Senior VP of Investments and Senior Portfolio Mgt. Director for Foster Marshall/Smith Barney. He served with Jamie Dimon (now head of JP Morgan) on the first board to set national policy managing client accounts. In 1993 Auxier received the Consulting Group Bob Dwyer Award honoring integrity and knowledge. “I wanted to create and run a fund that matched my own investment philosophy, with a focus on compounding and a goal of protecting over the long haul. It’s a mission to help people that still drives me today.” In 1998, he created Auxier Asset Management and then in 1999 Auxier Focus Fund. Auxier’s entire personal retirement is in his Fund. “Our focus is always on long-term performance and the power of compounding, which Einstein called the greatest invention.” Whether he’s deciding what crops to plant on his 100 acre Oregon farm or choosing which stocks to grow for investors, the 32-year investor takes the long view. “Both farming and investing require similar skills—patiently researching, assessing risks and considering price and value. It takes a passion for daily, grind-it-out research. There are no shortcuts.”

IMPORTANT INFORMATION

Before investing you should carefully consider the Fund’s investment objectives, risks, charges and expenses. This and other information is in the prospectus, a copy of which may be obtained by calling (877) 328-9437 or visiting the Fund’s website. Please read the prospectus carefully before you invest.

The Fund may invest in value and/or growth stocks. Investments in value stocks are subject to risk that their intrinsic value may never be realized and investments in growth stocks may be susceptible to rapid price swings, especially during periods of economic uncertainty. In addition, the Fund may invest in mid-sized companies which generally carry greater risk than is customarily associated with larger companies. Moreover, if the Fund’s portfolio is overweighted in a sector, any negative development affecting that sector will have a greater impact on the Fund than a fund that is not overweighted in that sector. An increase in interest rates typically causes a fall in the value of a debt security (Fixed-Income Securities Risk) with corresponding changes to the Fund’s value. Foreign securities are subject to additional risks including international trade, currency, political, regulatory and diplomatic risks.

Lake Oswego, Ore.— “With shocking ferocity” is how Jeff Auxier describes how fast investors can lose money during market conditions with extreme valuations. Auxier, founder and manager of the 16-year-old Auxier Focus Fund, says right now it’s especially important for investors to pay attention to price and value. “Take the market frenzy in biotech stocks,” he says. “More than 100 companies in the biotech index have $2.5 billion in aggregate revenue, but recently sported a valuation in excess of $140 billion.” Auxier, a long time student of market history, says indexing for the S&P 500 hit peak popularity in 1999 as P/E ratios exceeded 28 times just prior to the 40 percent correction. “With the current market at 18.5 times, now is not the time to blindly allocate capital without regard to price and value. There is also a huge cost if investors can’t benefit from the long-term compounding by being scared out in difficult markets,” says Auxier.

Can’t Afford a House but Buying Organic Produce, Free Range Beef and Microbrews

Millennials, and their refined choices in food and beverages are another market trend catching Auxier’s eye. “They can’t afford to buy a house due to high college debt and home prices, but millennials will soon outnumber the baby boomers as the biggest consumer spenders in history–expected to spend $200 billion annually beginning in 2017, and $10 trillion in their lifetimes. “They want to travel and enjoy premium food and beverage,” says Auxier. And they aren’t alone…

Global Food Demands for High Quality

An exploding global middle class is also demanding high quality foods. “Look at China,” says Auxier. “Almond demand from that country has grown 1,000 percent since 2001. Living on a working farm since 1989, I have seen firsthand the rising demand for quality food and its material impact on prices of hazelnuts, eggs, beef and alfalfa. Transparent food sourcing is becoming a monumental determinant in food sales. People are becoming better informed about ingredients, minerals, nutrition and the immune system in the prevention of disease.”

Other Trends Auxier is Watching

Drugs and the Aging: It is estimated that 10,000 Americans are turning 65 each day and, boosted in part by the Affordable Care Act, there’s an increase in demand for drugs. The oncology market is anticipated to rise from the current $74 billion to $100 billion in 2018. (Source: IMS Health) Rapid strides continue in disease treatments through immunotherapy.

Aggressive Central Banks: Globally, central banks have been aggressively lowering rates, (totaling 12 countries last year), supporting both the bond and stock markets. In the U.S., many companies provide additional impetus by borrowing to buy back a projected $1 trillion in stock. Global mergers and acquisitions hit $1.4 trillion in 2014, up 56 percent from 2013, and up another 11 percent in the first quarter of 2015.

Energy Oversupply: Technology and growing conservation efforts are helping control energy prices. For instance, since 2006 the cost of installing a solar system has dropped 65 percent, from $8 per megawatt to a recent $2.80. Last winter, despite record cold temperatures in the Northeast, natural gas prices dropped under $2.75 per Mcf. In the oil patch, there are an estimated 4,000 shale wells nationwide that are drilled but not yet completed. An energy oversupply bodes well for a U.S. economy that is still 70 percent consumption driven. Auxier sees opportunities in energy, but mainly in distressed credits and from potential mergers rather than rising oil prices.

S. corporate debt stands at $7 trillion, double its level in 2006. Much of this is so-called covenant-lite, which is higher risk. In 2006-07, 28 percent of debt issued was B rated. Today it is closer to 71 percent. Historically high overall debt levels hamper economic growth. High borrowing in developed economies like Japan, Europe, China and the U.S. have led Auxier to invest in companies that generally sell lower ticket necessity items that are less dependent on a strong economy. Bonds are priced with yields lower than in the Great Depression, yet food prices are close to a 15-year high. Food and beverage stocks may be dull, but the performance can be exciting.

Observations from the Road

Auxier is seeking businesses and investments that can survive another liquidity crisis and higher interest rates. “On my recent travels from Los Angeles to Seattle and from Omaha to Phoenix and Denver, economic activity may look vibrant but interest rates are priced as if we are in the worst economy in over 100 years. We may be slow, but not like the depressions of the 1870s or 1930s. It is more like central bank mispricing. We seek high, free cash flow yields that may help cushion unexpected downside surprises and financial panics. Spinoffs and split-offs continue to provide opportunity as they are often underfollowed.”

“Ask Questions”

Auxier is encouraging all investors to ask questions of their investor in charge—not a committee. “Having personally survived down markets since 1982, I can attest that having a stomach and a rational demeanor can be as important as intellect. Extreme volatility can make it difficult for investors to stay unemotional and engaged. Fads and fashions come and go. To endure, an investor needs to be constantly vigilant and apprised of the fundamentals. Ask questions,” he advises

About Jeff Auxier: Whether he’s deciding what crops to plant on Auxier Family Farms, or choosing which stocks to pluck for his Auxier Focus Fund, 33-year investor Jeff Auxier takes the long view. “Both farming and investing require similar skills, patiently researching, considering price, value and assessing risks. There are no shortcuts,” says Auxier. “Our focus is always on long term performance and the power of compounding, which Einstein called the ‘greatest invention’.” Auxier continues to eat his own cooking with 100 percent of his personal retirement invested in his fund. Auxier voluntarily undergoes a Global Investment Performance Standards (GIPS®) verification for Auxier Asset Management (as of 12/31/2014 more than $750 million in assets, including Auxier Focus Fund, and $113 million in pension consulting).

Before investing you should carefully consider the Fund’s investment objectives, risks, charges and expenses. This and other information about the Fund is in the prospectus, a copy of which may be obtained by calling (877) 328-9437 or visiting the Fund’s website. Please read the prospectus carefully before you invest.

The Fund may invest in value and/or growth stocks. Investments in value stocks are subject to risk that their intrinsic value may never be realized and investments in growth stocks may be susceptible to rapid price swings, especially during periods of economic uncertainty. In addition, the Fund may invest in mid-sized companies which generally carry greater risk than is customarily associated with larger companies. Moreover, if the Fund’s portfolio is overweighted in a sector, any negative development affecting that sector will have a greater impact on the Fund than a fund that is not overweighted in that sector. An increase in interest rates typically causes a fall in the value of a debt security (Fixed-Income Securities Risk) with corresponding changes to the Fund’s value.

The S&P 500 Index is a broad-based, unmanaged measurement of changes in stock market conditions based on 500 widely held common stocks. One cannot invest directly in an index. Price-to-earnings (P/E) of an index is the total price of the index divided by its total earnings

The term ‘Easy Money’ specifically denotes a condition in the money supply. Easy money occurs when the Federal Reserve allows cash flow to build up within the banking system. This lowers interest rates and makes it easier for banks and lenders to loan money. Money is therefore easily acquired by borrowers.

Foreside Fund Services, LLC, distributor.

Auxier Asset Management LLC is a registered investment advisor with the SEC. Auxier Asset Management claims compliance with the Global Investment Standards (GIPS®). To obtain a compliant presentation and / or the firm’s list of composite descriptions, please contact us at (800)835-9556 or info@auxierasset.com.

Jeff Auxier, Manager of the Auxier Focus Fund, is Watching Other Opportunities

Along the Global Food Chain and the “Oil Sheik-Out”

Lake Oswego, Ore.—(March 2015) Overseas markets gobbling up the grass fed beef and high quality hazelnuts grown by Farmer/Fund manager, Jeff Auxier, may signal an opportunity for investors in 2015.

“We see it at the grassroots level on our farm. Quality ingredients are in demand as concepts like farm-to-table gain broader acceptance,” says Auxier, manager of the 15 year old Auxier Focus Fund (AUXFX). “As living conditions improve, people are willing to pay more to benefit from the connection between nutrition, the immune system, and health.”

Global Transformation of the Food Industry—“People finally realize that the farther your food travels, the more unhealthy it becomes and that good nutrition is directly tied to a healthy immune system,” says Auxier. “In China for instance, food and water safety is the number one issue. I believe this transformation may feed exciting investment opportunities.”

“Consumers are paying up for quality food, rather than eating junk. Chipotles, for instance, is doing well in part, because they use grass fed beef. Kroger, one of our biggest positions and once your typical grocery chain, is now moving toward very healthy food products.”

A World Without Poverty—Auxier agrees with Microsoft Co-Founder Bill Gates who believes most global poverty may be wiped out by 2035, as more and better data is supercharging innovation and improving management of resources. “If you can’t measure it, you can’t manage it,” says Auxier. “We are constantly seeking companies that can apply technology’s advances to dull and mundane businesses, while enhancing the value proposition in the form of superior products and services. We’re looking for businesses that make enduring products people need and want and that’s better food. As technology enlightens and emboldens individuals around the globe, businesses focused on product quality will flourish and reward their owners, perhaps exponentially. Likewise, all the bad players in the world are getting exposed.”

More Investing Along the Food Chain—Auxier has always sought what he considers “enduring” stocks that retain value in lean economic times. In 1983, while investors stampeded to buy newly issued personal computer stocks, Auxier was investing in Pepsico. He still owns the stock and its spinoff Yum Brands (Kentucky Fried Chicken, Pizza Hut, Taco Bell). And what about the PC makers? A majority of those that went public, no longer exist and the US Bureau of Economic Analysis just reported PC prices have dropped 99.9 percent since 1980. “That’s why you could say we prefer potato chips over memory chips,” says Auxier.

Outlook 2015—“We continue to see selective opportunities among large companies that typically are downsizing and energized by small teams heavily armed with rapidly advancing technology,” says Auxier. “Consumer spending accounts for close to 70 percent of the U.S. economy, where recent trends are the most promising since 2006. Sharp drops in most energy prices and improving employment trends, provide a tailwind for domestic companies.”

Capitalizing on Today’s Oil Sheik-Out—“A volatile combination of an energy glut and debt will likely lead to tremendous corporate blow ups and resulting energy sector bargains,” says Auxier. “At current energy price levels, the typical family could pocket $750 to $1,000 this year from savings on gasoline, heating oil and natural gas. Adding to the energy glut, global production capacity of liquefied natural gas (LNG) appears likely to jump the most in four years in 2015. Over the past five years, oil and gas companies have taken on over $1.2 trillion in new borrowings. (Source: Dealogic) Over the past 30 years, when oil prices have declined by 30 percent or more in a six month time frame, the S&P 500 has been higher twelve months later. We are watching closely for an anticipated catalyst, perhaps in the form of mergers to put more of a floor under stock values, before investing in a major way.”

Oil and Gas, iPhones and Biotech—EOG Resources, Inc. is a well-managed U.S. leader in shale-based oil and gas. EOG has reduced drilling days from 14.2 in 2012 to 4.3 days recently, dramatically lowering their cost of production. “They now believe they can achieve a 10 percent return when oil is as low as $40 a barrel in the South Texas Eagle Ford,” says Auxier. “Venture capitalist Andreessen Horowitz notes that Apple’s iPhone 6 unveiled in September 2014, sports a processor with 625 times more transistors than a 1995 Pentium CPU which was common in PCs. On the iPhone 6’s launch weekend, Apple sold 25 times more CPU transistors than were in all the PCs worldwide in 1995!” According to Wall Street sage Jim Grant, “The current roster of 70 billion dollar startups globally is nearly twice as large as the number during the boom years in 1999 and 2000”. Auxier says these high prices are “unleashing a torrent of brainpower seeking the prize”. “Biotech is enjoying a similar boom,” says Auxier. “Cures for cancer may be in sight through immunotherapy. However, as we have seen with the commodity bust (beginning in 2011), and crude oil’s 50 percent tank in six months, high prices, good times and booms don’t last forever.”

About Jeff Auxier and the Auxier Focus Fund

Auxier is a contrarian schooled by his investment heroes, long before they became today’s financial rock stars. Fresh out of the University of Oregon School of Business, Auxier called Warren Buffet, Sir John Templeton and others. He’s still amazed they answered his calls and, in some cases, agreed to meet with him, sharing advice that guides Auxier’s investment philosophy to this day. Auxier went onto become Senior VP of Investments and Senior Portfolio Mgt. Director for Foster Marshall/Smith Barney. He served with Jamie Diamond (now head of JP Morgan) on the first board to set national policy managing client accounts. In 1993 Auxier received the Consulting Group Bob Dwyer Award honoring ‘integrity and knowledge’. “I wanted to create and run a fund that matched my own investment philosophy, with a focus on compounding and a goal of protecting over the long haul. It’s a mission to help people that still drives me today.” In 1999, he created Auxier Asset Management and the Auxier Focus Fund. “Our focus is always on long-term performance and the power of compounding, which Einstein called the ‘greatest invention’.” Whether he’s deciding what crops to plant on his 100 acre Oregon farm or choosing which stocks to plant for investors, the 32-year investor takes the long view. “Both farming and investing require similar skills—patiently researching, assessing risks and considering price and value. It takes a passion for daily, grind-it-out research. There are never any shortcuts.”

Before investing you should carefully consider the Fund’s investment objectives, risks, charges and expenses. This and other information is in the prospectus, a copy of which may be obtained by calling (877) 328-9437 or visiting the Fund’s website. Please read the prospectus carefully before you invest.

The Fund may invest in value stocks, which are subject to risk that their intrinsic value may never be realized, and growth stocks, which may be susceptible to rapid price swings. Investments in mid-sized companies generally carry greater risk than is customarily associated with larger companies. Moreover, if the Fund’s portfolio is overweighed in a sector, any negative development affecting that sector will have a greater impact on the Fund than a fund that is not overweighed in that sector. An increase in interest rates typically causes a fall in the value of a debt security (Fixed-Income Securities Risk) with corresponding changes to the Fund’s value. Foreign securities are subject to additional risks including international trade, currency, political, regulatory and diplomatic risks. There can be no guarantee of success with any technique, strategy, or investment. All investing involves risk, including the loss of principal.

As of 9/30/14 the Stock Portion of the Investor Class, AUXFX, is Up 360% Since Inception, Growth of $10,000 to $29,500 Since Inception;

Auxier Continues Eating His Own Cooking and Preaching the Power of Compounding

News release continues after the following required disclosure information:

Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. As stated in the current prospectus, the Investor Class Share’s annual operating expense ratio (gross) is 1.26%. The Adviser has contractually agreed to waive a portion of its fee and/or reimburse Fund expenses to limit Total Annual Fund Operating Expenses to 1.25% through October 31, 2015. Other share classes may vary. The Fund charges a 2.0% redemption fee on shares redeemed within six months of purchase. For the most recent month-end performance, please call (877) 328-9437 or visit the Fund’s website at www.auxierasset.com. The recent growth in the stock market has helped to produce short-term returns that are not typical and may not continue in the future.

The table below summarizes performance for the quarter, 1-yr, 5-yr, 10-yr and Since Inception as of September 30, 2014.

3 Month Cumulative

1 Year Annualized

5 Year Annualized

10 Year Annualized

Annualized Since Inception (July 9, 1999)

Cumulative Since Inception (July 9, 1999)

Auxier Focus Fund

-1.35%

10.66%

10.96%

7.41%

7.37%

195.50%

S&P 500 Index

1.13%

19.73%

15.70%

8.11%

4.20%

87.15%

The graph shows the value of a hypothetical initial investment of $10,000 in the Fund and the S&P 500 Index on July 9, 1999 (inception of the Fund) and held through September 30, 2014. Fund returns (i) assume the reinvestment of all dividends and capital gain distributions and (ii) would have been lower during the period if certain fees and expenses had not been waived. Performance shown is for the Fund’s Investor Class shares; returns for other share classes will vary. Performance for Investor Class shares for periods prior to December 10, 2004 reflects performance of the applicable share class of Auxier Focus Fund, a series of Unified Series Trust (the “Predecessor Fund”). Prior to January 3, 2003, the Predecessor Fund was a series of Ameriprime Funds. The performance of the Fund’s Investor Class shares for the period prior to December 10, 2004 reflects the expenses of the Predecessor Fund.

Lake Oswego, Ore.—(December 2014) Whether he’s deciding what crops to plant on Auxier Family Farms, or choosing which stocks to pluck for his Auxier Focus Fund, 32 year investor Jeff Auxier takes the long view. “Both farming and investing require similar skills, patiently researching, considering price, value and assessing risks. There are no shortcuts,” says Auxier. “Our focus is always on long term performance, and the power of compounding, which Einstein called the ‘greatest invention’.”

The stock portion of the $289 million Auxier Focus Fund is up 360% since inception (as of 9/30/2014), and the Fund has survived every market collapse since 1999. A voracious researcher (8-12 hours a day), Auxier travels the investment galaxy seeking what he deems is the best return with less risk–be it stocks, bonds, or treasuries, regardless of asset class. He holds no more than 3-5 percent position in any one stock or company and since inception has averaged a 73% exposure to equities. “Our idea is to compound investors’ savings at a risk they can tolerate,” says Auxier. “For us to keep people in the game, we keep a sharp eye on quantifying risk. Ours is a Fund for the patient, long-term investor, who appreciates the power of compounding.”

Continuing to eat his own cooking, with 100% of his personal retirement in his fund, Auxier will not sell a single share while manager, and each quarter, Auxier voluntarily undergoes a Global Investment Performance Standards examination for Auxier Asset Management (more than $700 million in assets, including AUXFX). “People need to know where their money is invested, whose investing it, and that their manager’s money is right in there with them.”

The long view from Auxier Family Farms is not far from the end of the Oregon Trial, on 108 bucolic acres in the epicenter of the nation’s hazelnut industry. It is far from the herd mentality of Wall Street. The beef and hazelnuts Auxier Family Farms and Auxier Resources produce, help feed a growing global demand for high quality protein. “Living here not only fosters independence of thought, but it exposes—at a true grassroots level—business in real-time, all along the food chain.”

Auxier is a contrarian, schooled by his financial rock star heroes like Buffet and Templeton. Fresh out of the University of Oregon School of Business, Auxier called them, and is still amazed they answered, sharing advice that continues to guide the Auxier Focus Fund today. Auxier became Senior VP of Investments, and Senior Portfolio Management Director for Foster Marshall/Smith Barney, serving with Jamie Diamond (now head of JP Morgan) on the first board that set national policy managing client accounts. In 1993, Auxier received the Consulting Group Bob Dwyer Award honoring ‘integrity and knowledge’. “I had 15 great years working with the nation’s top CFO and CEO leaders, but I wanted to create and run a fund that matched my own investment philosophy, with a focus on compounding, and a goal of protecting over the long haul. It’s a mission to help people that still drives me today.”

Before investing you should carefully consider the Fund’s investment objectives, risks, charges and expenses. This and other information about the Fund is in the prospectus, a copy of which may be obtained by calling (877) 328-9437 or visiting the Fund’s website. Please read the prospectus carefully before you invest.

The Fund may invest in value and/or growth stocks. Investments in value stocks are subject to risk that their intrinsic value may never be realized and investments in growth stocks may be susceptible to rapid price swings, especially during periods of economic uncertainty. In addition, the Fund may invest in mid-sized companies which generally carry greater risk than is customarily associated with larger companies. Moreover, if the Fund’s portfolio is overweighted in a sector, any negative development affecting that sector will have a greater impact on the Fund than a fund that is not overweighted in that sector. An increase in interest rates typically causes a fall in the value of a debt security (Fixed-Income Securities Risk) with corresponding changes to the Fund’s value.

The S&P 500 Index is a broad-based, unmanaged measurement of changes in stock market conditions based on 500 widely held common stocks. One cannot invest directly in an index.

Farming on Wall Street with Jeff Auxier

Harvest Time on Auxier Farms Yields Profits and Emerging Food Trends for the Founder of the Auxier Focus Fund

LAKE OSWEGO, OR–Jeff Auxier, one of Wall Street’s most tenured fund managers and market historians has another job, where the dress code is Carhartts and cowboy hats, and the ride to work is from the seat of a 30,000 pound John Deere tractor.

Auxier is founder of the Auxier Focus Fund and also operates a hazelnut, cattle and timber operation, a few winding miles from the end of the Oregon Trail. It is the epi-center for 97 percent of the premium hazelnuts grown in the United States.

From this bucolic landscape, Auxier enjoys a “boots on the ground” view of early market trends. “Farming puts you at the bottom,” says Auxier. “You witness the actual interactions along the food chain—transportation, input costs, fuel, equipment, demands, and commodities.” What he sees from the farm is a microcosm of early food trends, including a skyrocketing global demand for higher quality foods from the emerging middle classes. For instance:

Hazelnuts: Recently Auxier harvested over 55 tons—up 20 percent– of high-quality hazelnuts that are now on their way to Asia—and nutella!

Cattle: Auxier’s high quality, grass-fed (as opposed to grain fed) cows are in demand. Korea is a new market and free trade agreements elsewhere look promising. In China, food and water safety are the country’s biggest issues.

“Powerful trend toward higher quality food and nutrition may be a solution to skyrocketing health care costs.” Auxier believes Americans suffer from serious mineral deficiencies. He says this growing awareness and a demand for higher quality food, could take a 20 percent bite out of our health care costs.

Jeff can also discuss:

How he’s capitalizing on overseas markets.

The low cost of communications allows people to see how others live, fueling aspirational desires.

New challenges for farmers.

hjHis deep-rooted investment philosophy.

Why he believes investors are missing out on the European crisis.

His love affair with the tortoise stocks.

Why so few managers invest in their own funds.

The impending bond bubble.

Why he believes higher interest rates will not kill the economy.

Auxier uses many of the same skills to operate his Fund as he does the farm. “The key to investing is you have to be a voracious learning machine. I try to spend eight hours a day going through hundreds of pages of research. You need the same tenacity, dedication and humility in farming. There’s not a lot of ego there, you just constantly have to get the job done on a day to day basis.”

Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. As stated in the current prospectus, the Investor Class Share’s annual operating expense ratio (gross) is 1.29%. The Adviser has contractually agreed to reduce a portion of its fee and reimburse Fund expenses to limit Total Annual Fund Operating Expenses to 1.25% through at least October 31, 2015. Other share classes may vary. The Fund charges a 2.0% redemption fee on shares redeemed within six months of purchase. For the most recent month-end performance, please call (877) 328-9437 or visit the Fund’s website, www.auxierasset.com. The recent growth in the stock market has helped to produce short-term returns that are not typical and may not continue in the future.

Outperformed 62% of Morningstar Peers. (As of 9/30/2013in its 5 year Morningstar Large Value category. The Fund’s 1, 3, 5 and 10 year Morningstar rankings are, respectively, 1092 out of 1192 funds; 980 out of 1043; 350 out of 926 funds; and 244 out of 608 funds. Morningstar rankings are based on a fund’s total return performance. Past performance is not an indicator of future results.)

The Auxier Difference—Auxier has been the only manager of the Fund since inception in 1999 and has more than 30 years of investment management experience, including more than 45,000 hours as a business analyst. Auxier has skillfully guided his investors through the 1983 PC bubble, 1987 crash, 1980’s thrift crisis and more. He remains one of his Fund’s largest individual shareholders, investing his entire personal retirement, and will not sell a single share while still manager. Auxier deliberately lives and works far from the herd mentality on Wall Street, on a profitable cattle, timber and hazelnut farm near the end of the Oregon Trail. This lifestyle, says Jeff, keeps him humble and focused on his investors.

IMPORTANT DISCLOSURE

Before investing you should carefully consider the Fund’s investment objectives, risks, charges and expenses. This and other information is in the prospectus, a copy of which may be obtained by calling (877) 328-9437 or visiting the Fund’s website. Please read the prospectus carefully before you invest.

The Fund may invest in value stocks, which are subject to risk that their intrinsic value may never be realized, and growth stocks, which may be susceptible to rapid price swings. Investments in mid-sized companies generally carry greater risk than is customarily associated with larger companies. Moreover, if the Fund’s portfolio is overweighed in a sector, any negative development affecting that sector will have a greater impact on the Fund than a fund that is not overweighed in that sector. An increase in interest rates typically causes a fall in the value of a debt security (Fixed-Income Securities Risk) with corresponding changes to the Fund’s value. Foreign securities are subject to additional risks including international trade, currency, political, regulatory and diplomatic risks. There can be no guarantee of success with any technique, strategy, or investment. All investing involves risk, including the loss of principal.

The S&P 500 Index is a broad-based, unmanaged measurement of changes in stock market conditions based on 500 widely held common stocks. One cannot invest directly in an index.

Past performance is no guarantee of future results. For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund’s monthly performance (including the effects of sales charges, loads, and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. The Overall Morningstar Rating for a fund is derived from a weighted average of the performance figures associated with its 3-, 5- and 10-year Morningstar Rating metrics.

For the period ending 9/30/13 the Auxier Focus Fund was rated against the following numbers of Large Value funds over the following time periods: 1043 funds in the overall and last three years, 926 funds in the last five years, and 608 in the last 10 years. With respect to these Large Value funds, the Fund received a Morningstar Rating of 4 starts for the Overall Rating, 2 stars for the three-year period, 5 stars for the five-year period, and 4 starts for the ten-year period. This Morningstar Rating is for the Investor Class shares only.

]]>https://www.auxierasset.com/farming-on-wall-street-with-jeff-auxier-harvest-time-on-auxier-farms-yields-profits-and-emerging-food-trends-for-the-founder-of-auxier-focus-fund/feed/0Auxier Focus Fund Has “Achieved A Track Record That Many House Name Mutual Fund Managers Would Love To Have,” Says GuruFocushttps://www.auxierasset.com/auxier-focus-fund-has-%e2%80%9cachieved-a-track-record-that-many-house-name-mutual-fund-managers-would-love-to-have%e2%80%9d-says-gurufocus/
Mon, 09 Aug 2010 19:31:46 +0000http://auxierasset.com/?p=844(as of 6/30/2010)

August 2010, Lake Oswego, OR–Once again, the Auxier Focus Fund, now 11 years old, has soared past the S&P 500 Index and most of the fund’s peers in the Morningstar Large Value category. Founder, manager Jeff Auxier also earned impressive nods from Morningstar and GuruFocus. “We feel this is a great time to be an opportunistic manager in a “go-anywhere” fund. Currently, 70% of trading is not based on intrinsic value. This creates opportunities for the serious, long-term business analyst,” says Auxier.

AUXFX Outperforms 98% of Peers. (As of 6/30/10in its 3 year Morningstar Large Value category. The Fund’s 1, 3, 5 and 10 year Morningstar rankings are, respectively, 690 out of 1283 funds; 13 out of 1135 funds; 32 out of 952 funds; and 15 out of 494 funds. Morningstar rankings are based on a fund’s total return performance. Past performance is not an indicator of future results.)

Overall 5 Star Morningstar Designation. (Overall Morningstar rating as of 6/30/2010 out of 1,135 Large Value Funds. Derived from a weighted average of the risk adjusted performance figures associated with the Fund’s 3, 5 and 10 year Morningstar Rating metrics.)

Overall Lipper Leader for “Consistent Return”. (Lipper Leader Multi-Cap Value classification, received the following ratings for the 3, 5, 10 year and Overall periods, respectively: Lipper Leader among 259 funds, 201 funds, 90 funds and 261 Funds as of 6/30/2010.)

Overall Lipper Leader for “Preservation”. (Lipper’s Equity fund classification, received the following ratings for the 3, 5, 10 year and Overall periods, respectively: Lipper Leader among 9,704, 7,658, 4,104 and 9,704 Funds as of 6/30/2010.)

Overall Lipper Leader for “Total Return”.(Lipper’s Multi-Cap Value classification, received the following ratings for the 3, 5, 10 year and Overall periods respectively: Lipper Leader among 266, 202, 92 and 266 Funds as of 6/30/2010.)

Jeff Auxier added to GuruFocus’s “Guru” List. (GuruFocus: “Only a handful of people in this world can qualify as investment Gurus. We have carefully identified a number of investment Gurus based on their long term track record. We track their portfolio, buys, sells and insights in market.”) GuruFocus.com July 2010.

AUXFX makes the Morningstar 500. (Morningstar’s list of funds “narrowed down from 7,000” that Morningstar says “should be on your radar.”) Morningstar.com, May 2010.

AUXFX average annual returns (as of 6/30/2010 for the 1 year, 5 year and 10 year periods, 7/9/1999, were 12.99%, 1.97% and 5.79% respectively. The S&P 500 Index returns for same time periods were 14.43%, -0.79% and -1.59% respectively.)

Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. For the most recent month-end performance, please call (877) 328-9437 or visit the Fund’s website. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 1.25%. The Fund’s adviser has contractually agreed to maintain the total annual operating expenses at 1.25% which is in effect until October 31, 201000. Fund charges a 2.0% redemption fee on shares redeemed within six months of purchase. Please refer to additional important disclosure at the end of this release.

The Auxier Difference–Statistics show that most mutual funds are underperforming the market (Time magazine April 20, 2009, SEC Staff speech, April 2, 2009). Many have managers who don’t invest in their own funds (Morningstar 6/16/2008) and many of those managers can only claim less than 10 years experience (Morningstar 6/2009). Contrary to that, Jeff Auxier’s 27 years of investment know-how has guided him through every market bump and bubble. He remains one of his fund’s largest shareholders, investing more than 2 million dollars (his entire personal retirement). He will not sell a single share while still manager, and recently lowered his fees to investors by 10 Basis Points[1] To 1.25% (gross). To learn more about the Auxier Focus Fund visit www.auxierasset.com.

Auxier Asset Management

Before investing you should carefully consider the Fund’s investment objectives, risks, charges and expenses. This and other information is in the prospectus, a copy of which may be obtained by calling (877) 328-9437 or visiting the Fund’s website. Please read the prospectus carefully before you invest.

Fund returns (i) assume the reinvestment of all dividends and capital gain distributions and (ii) would have been lower during the period if certain fees and expenses had not been waived. Performance shown is for the Fund’s Investor Class shares; returns for other share classes will vary. Performance for Investor Class shares for periods prior to December 10, 2004 reflects performance of the applicable share class of Auxier Focus Fund, a series of Unified Series Trust (the “Predecessor Fund”). Prior to January 3, 2003, the Predecessor Fund was a series of Ameriprime Funds. The performance of the Fund’s Investor Class shares for the period prior to December 10, 2004 reflects the expenses of the Predecessor Fund.

The S&P 500 Index is a broad-based, unmanaged measurement of changes in stock market conditions based on the average of 500 widely held common stocks.

The Fund may invest in value and/or growth stocks. Investments in value stocks are subject to risk that their intrinsic value may never be realized and investments in growth stocks may be susceptible to rapid price swings, especially during periods of economic uncertainty. In addition, the Fund may invest in smaller companies which generally carry greater risk than is customarily associated with larger companies for various reasons such as narrower markets, limited financial resources and less liquid stock. Moreover, if the Fund’s portfolio is overweighted in a sector, any negative development affecting that sector will have a greater impact on the Fund than a fund that is not overweighted in that sector.

2010 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. For the period ended 3/31/2010, the Fund’s Overall Morningstar Rating was 5 stars. For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund’s monthly performance (including the effects of sales charges, loads, and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.) The Overall Morningstar Rating for the Fund is derived from a weighted-average of the performance figures associated with its 3- 5- and 10 year Morningstar Rating metrics. As of 6/30/2010, the Fund was rated against the following numbers of U.S. domiciled Large Value funds over the following time periods: 1135 funds in the last three years, 952 funds in the last five years and 494 for last ten years.With respect to these Large Value funds, the Fund received a Morningstar Rating of 5 stars, 5 stars and 5 stars for the 3- 5- and 10 year periods, respectively. Past performance is no guarantee of future results. The Fund may have experienced negative performance during one or all of the time periods listed.

[1] A basis point can be summarized as follow: 1% change = 100 basis points. 0.01% = 1 basis point

“The Next 12 To 18 Months Are Going To Be An Exciting Time For Shopping,” Says Jeff Auxier

May 2009, Lake Oswego, OR—The Auxier Focus Fund earned the Wall Street Journal’s Category Kings distinction again, this time for the 1st quarter of 2009. Morningstar Advisor magazine says the fund “has held up relatively well during the current bear market, too.” Auxier, with more than 25 years of investment experience in every market season, remains consistent in how he manages the fund, telling Morningstar Advisor that, as always, he seeks predictability. “We want to compound client money consistently, so we look for businesses with high degrees of consistency, without gimmicks,” Auxier says. His firm, Auxier Asset Management, like the 108 acre, profitable farm where he lives, is debt free. As he puts it, “This frees me to concentrate on the stewardship of my investors’ hard‐earned money, without conflicts or pressures of insolvency facing so many bigger firms today. I also have skin in the game—my entire personal retirement is on the line with my investors.” Here’s how the Auxier Focus Fund performed in the 1st quarter of 2009.

Wall Street Journal “Category King” March (Based on total return, Auxier Focus Fund ranked 4 out of 364 funds for the one year period as of 3/31/2009 in the Multi‐Cap Value Equity Funds category.

Wall Street Journal Source: Lipper. For Funds with multiple share classes, only the largest is shown. (As of 3/31/2009 Lipper’s Multi‐Cap Value classification received the following rankings: 5 out of 348 funds for the one year period; 5 out of 275 three year period; and 11 out of 210 for five year period.)

Overall Lipper Leader for “Preservation” (Lipper’s Multi‐Cap Value classification, received the following ratings for the 3, 5 year and Overall periods, respectively: Lipper Leader among 9285, 7486 and 9285 Funds as of 03/31/09.

Overall Lipper Leader for “Total Return” (Lipper’s Multi‐Cap Value classification, received the following ratings for the 3, 5 year and Overall periods, respectively: Lipper Leader among 291, 226 and 291 Funds as of 03/31/09.

Overall Lipper Leader for “Consistent Return” (Lipper’s Multi‐Cap Value classification, received the following ratings for the 3 year and Overall periods, respectively: Lipper Leader among 284 and 286 Funds as of 03/31/09; Rated 4 out of 219 Funds for the 5 year period as of 03/31/09.

Overall 4 Star designation from Morningstar (Overall Morningstar rating as of 03/31/09 out of 968 Moderate Allocation Funds. Derived from a weighted average of the risk adjusted performance figure associated with the Fund’s 3‐ and 5‐ year Morningstar Rating metrics.)

AUXFX average annual returns (as of 3/31/2009 for the 1 year, 5 year and since inception (7/9/1999) were ‐24.08%, ‐1.15% and 3.36% respectively.)

Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. For the most recent month‐end performance, please call (877) 328‐9437 or visit the Fund’s website. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 1.35%. The Fund’s adviser has contractually agreed to maintain the total annual operating expenses at 1.35% which is in effect until October 31, 2009. Fund charges a 2.0% redemption fee on shares redeemed within six months of purchase. Please refer to additional important disclosure at the end of this release.

The Auxier Focus Fund is founded and managed by Jeff Auxier who also manages Auxier AssetManagement, based in Oregon. Despite all the gloom on Wall Street, Auxier remains optimistic about what he believes will be “historic, generational buying opportunities” coming out of the world‐wide economic slump. He says, “We believe this is a great time for long term investors who ‘price’ their purchases to go shopping.” A serious student of market history, Auxier says, “Successful investors have historically sown the seeds of fortunes in economic downturns. I’ve waited for this opportunity my entire career.” (Note: There can be no guarantee of success with any technique, strategy, or investment. All investing involves risk, including the loss of principal.)

Auxier Asset Management

Fund returns (i) assume the reinvestment of all dividends and capital gain distributions and (ii) would have been lower during the period if certain fees and expenses had not been waived. Performance shown is for the Fund’s Investor Class shares; returns for other share classes will vary. Performance for Investor Class shares for periods prior to December 10, 2004 reflects performance of the applicable share class of Auxier Focus Fund, a series of Unified Series Trust (the “Predecessor Fund”). Prior to January 3, 2003, the Predecessor Fund was a series of Ameriprime Funds. The performance of the Fund’s Investor Class shares for the period prior to December 10, 2004 reflects the expenses of the Predecessor Fund. The S&P 500 Index is a broad‐based, unmanaged measurement of changes in stock market conditions based on the average of 500 widely held common stocks. One cannot invest directly in an index. Foreside Fund Services, LLC, distributor.

Before investing you should carefully consider the Fund’s investment objectives, risks, charges and expenses. This and other information is in the prospectus, a copy of which may be obtained by calling (877) 328-9437 or visiting the Fund’s website. Please read the prospectus carefully before you invest.

The Fund may invest in value and/or growth stocks. Investments in value stocks are subject to risk that their intrinsic value may never be realized and investments in growth stocks may be susceptible to rapid price swings, especially during periods of economic uncertainty. In addition, the Fund may invest in smaller companies which generally carry greater risk than is customarily associated with larger companies for various reasons such as narrower markets, limited financial resources and less liquid stock. Moreover, if the Fund’s portfolio is overweighted in a sector, any negative development affecting that sector will have a greater impact on the Fund than a fund that is not overweighted in that sector.

2009 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. For the period ended 03/31/2009, the Fund’s Overall Morningstar Rating was 4 stars. For each fund with at least a three‐year history, Morningstar calculates a Morningstar Rating based on a Morningstar Risk‐Adjusted Return measure that accounts for variation in a fund’s monthly performance (including the effects of sales charges, loads, and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.) The Overall Morningstar Rating for the Fund is derived from a weighted‐average of the performance figures associated with its 3‐ and 5‐year Morningstar Rating metrics. The Fund was rated against the following numbers of U.S. domiciled Moderate Allocation funds over the following time periods: 968 funds in the last three years and 799 funds in the last five years. With respect to these Moderate Allocation funds, the Fund received a Morningstar Rating of 4 stars and 4 stars for the 3‐ and 5‐year periods, respectively. Past performance is no guarantee of future results.

Lipper Leader ratings for Preservation reflect funds’ historical loss avoidance relative to other funds within the same asset class. Lipper Leader ratings for Total Return reflect fund’s historical total return performance relative to peers. Scores are subject to change every month and are calculated for the following periods: 3‐year, 5‐year, 10‐year, and Overall. The overall calculation is based on an equal‐weighted average of percentile ranks for each measure over 3‐year, 5‐year, and 10‐year periods (if applicable). For each measure, the highest 20% of funds in each peer group are named Lipper Leaders. The next 20% receive a rating of 4; the middle 20% are rated 3; the next 20% are rated 2, and the lowest 20% are rated 1. Lipper ratings are relative, rather than absolute measures, and funds named Lipper Leaders may still experience losses periodically; those losses may be larger for equity and mixed equity funds than for fixed income funds. The Auxier Focus Fund, in Lipper’s Multi‐Cap Value classification, received the following ratings as of 03/31/2009: Preservation (in Equity asset class) 3, 5‐year and Overall periods, respectively: Lipper Leader among 9285, 7486 and 9285 Funds). Total Return (in Equity asset class): Lipper Leader among 291, 226 and 291 Funds for 3 year, 5 year and Overall eriods, respectively. Consistent Return (in Equity asset class) 3 year and Overall periods: Lipper Leader among 284 and 286 respectively; 4 Rating out of 219 funds in 5 year period. Lipper ratings are not intended to predict future results, and Lipper does not guarantee the accuracy of this information. More information is available at www.lipperweb.com. Lipper Leader Copyright 2008, Reuters, All Rights Reserved.